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Suppose the following two independent investment opportunities are available to Fitz, Inc. The appropriate discount rate is 12 percent. Year Project Alpha Project Beta
Suppose the following two independent investment opportunities are available to Fitz, Inc. The appropriate discount rate is 12 percent. Year Project Alpha Project Beta 0 -$6,300 -$7,900 1 3,200 1,800 2 3,100 6,300 3 1,900 4,900 a. Compute the profitability index for each of the two projects. (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) Project Alpha Project Beta Profitability Index
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